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1.Thespeedisslow.

2.Affectedbytheweather

Air

￡1265

￡253

4hours

1.Fastspeed

2.Lowrisk

1.Hightotalcost

2.Theweightlimit

Rail

￡1,275

￡51

2days

2.Largetransportcapacity

3.Lowcost

4.Safety

1.Highcost

2.Inflexible

Directroad

￡1350

￡67.5

3days

1.Flexible

2.lowinvestment

1.highenergyconsumption

2.smalltransportcapacity

Multi-mode

￡1185

￡47.4

7daysand

18hours

1.flexibly

2.reducecost

3.speedupthespeedof

transportation

1.highcostofinvestment

2.thegoodsthatcanbetransportedhavecertainlimitations

Technicalreport2—Consignmentdeliveryterms

Table—Incotermsandtheirdefinition

（Thefirstrowhasbeencompletedasanexample）

Initial

Incoterm

Description

EXW

ExWorks（namedplaceofdelivery）

Thebuyerisresponsibleforunloading.Thistermplacesthemaximumobligationonthebuyerandminimumobligationsontheseller.TheExWorkstermisoftenusedwhenmakinganinitialquotationforthesaleofgoodswithoutanycostsincluded.EXWmeansthatasellerhasthegoodsreadyforcollectionathispremisesonthedateagreedupon.Thebuyerpaysalltransportationcostsandalsobearstherisksforbringingthegoodstotheirfinaldestination.Thesellerdoesn’tloadthegoodsoncollectingvehiclesanddoesn’tclearthemforexport.

FOB

FreeonBoard（namedportofshipment）

UndertheFOBcondition,thesellerassumesallthecostsandrisksuntilthegoodsareloadedonboard.Thesellermustalsoarrangetheexportclearanceprocedures.Thebuyerpaystheoceanfreight,billoflading,insurance,dischargeandtransportationchargesfromtheportofarrivaltothedestination.

FCA

FreeCarrier（named

placeofdelivery）

Atradetermrequiringthesellertodeliverthegoodstothedesignatedairport,wharforotherplacewherethecarrieroperates.Transportationcostandlossriskaretransferredtothebuyerafterdeliverytothecarrier.Theseller,whendeliveringthegoods,fulfillshisobligationtodeliverthegoods,whichisresponsibleforthebuyer'

sdesignatedcarrierattheappointedplace.

CIF

Cost,Insurance&

Freight（namedportof

destination）

Thecomponentsofthepriceincludetheusualfreightandtheagreedpremiumfromtheportofshipmenttotheportofdestination,sotheseller,inadditiontothesameobligationsasthetermsoftheCFR,alsohandlestheinsuranceforthebuyerandpaysthepremiumforthebuyer.Accordingtogeneralinternationaltradepractice,theinsuranceamountinsuredbytheSellershallbeaddedtoCIFat10%.

CPT

CarriagePaidto

（namedplaceofdestination）

Oncethegoodshavebeendeliveredtothecarrier,theriskofdamageorlossofthegoodsbeingtransportedwillbetransferredfromthesellertothebuyer.Thesellerisonlyresponsibleforarrangingthegoodstothedestination,insteadofinsuringthegoodswhentransportingthegoods.Itisdesignedtomeettheneedsofmodernenterprises.

CIP

CARRIAGEANDINSURANCEPAIDTO（namedplaceofdestination）

Thesellerdeliversthegoodstothecarrierorthefirstcarrierandpaysthegoodstothedestination.Atthesametime,thesellermustobtaintheinsuranceofthegoodsintransit.Afterthesellerdeliversthegoodstothecarrier,theriskwillbepassedtothebuyer.

DAT

DeliveredAtTerminal

（namedterminalat

portorplaceof

TheIncotermnoticerequiresthesellertodischargethegoodsatthedesignateddock.Thesellertakesallthetransportationcosts（export,freight,themaincarrierunloadingandportofdestination）andassumesallrisksuntilthedestinationorthedestinationisreached.

Allexpensesafterunloading（suchasimportduties,customsduties,customsandtransportationcharges）shallbebornebythebuyer.However,itisimportanttonotethatanydelayonthepierisusuallybornebytheseller.

DAP

DeliveredatTerminal

Thismeansthatthesellertakesallthetransportationcosts,suchastheexport,freight,theunloadingofthemaincarrierfromtheportofdestinationandtheportofdestination,andmustbearalltherisksuntilthedestinationorthedestination.Theterminalcanbeaport,anairportoraninlandfreightinterchange.Importduties/taxes/customschargesaretobebornebythebuyer.Whenthebuyercontrolsthegoods,theriskispassedtothebuyer.

DDP

DeliveredDutyPaid

（namedplaceof

Thismeansthatthesellerisresponsiblefordeliveringthegoodstothedesignatedplaceatthebuyer'

splaceandpayingalltheexpensesforthedeliveryofthegoodstothedestination,includingimportdutiesandtaxes.Thesellerisnotresponsibleforunloadingthegoods.Whenthesellerdeliversthegoodsatthedesignateddestination,theriskispassedtothebuyer.Thisclauseputstheseller'

smaximumobligationsandthebuyer'

sminimumobligationstogether.

Incoterms2010istheInternationalChamberofCommerceannouncesthetermsofinternationalcontracts.Itincludes11terms,suchastheabovetable.TheseProvisionsenhancetheefficiencyofinternationaltradeandsimplifytheprocessandstage.

Table—Allocationsofcostbuyer/selleraccordingtoIncoterms2010

（Thefirstandsecondrowshavebeencompletedasexamples）

Incoterm2010

Export-

Customsdeclaration

Carriagetoportofexport

Unloadingoftruckinportofexport

Loadingchargesinportofexport

Carriage（SeaFreight/AirFreight）toportofimport

Unloadingchargesinportofimport

Loadingontruckinportofimport

Carriagetoplaceofdestination

Insurance

Importcustomsclearance

Importtaxes

Buyer

Seller

Buyer/Seller

Fortheimportanceofinformationproviders,itensuresthattransactionsarecompletedsuccessfullyandsafely.Buyersandsellerscansigncontracts,includingrights,obligationsandotherrelevantprovisions.Italsoclearlyshowsthepriceandcostbetweenthebuyerandtheseller.

Technicalreport3—Consolidationandgroupagearrangements

Chart—Consolidationandgroupagearrangements

Definitionof

Groupage

Groupageisaplacewhereseveralconsignorsaresenttoafewconsigneestobesenttoadestinationsomewhereinaplaceoforigin.Suchgoodsareusuallypackagedandmergedbythecarrieratthefreightpoint.Forthecarrierofsuchgoods,thecarriershallundertaketheoperationofboxingandunboxing.Loadingandunloadingchargesstilltaketheresponsibilityofthecargocarrier,whichisbasicallythesameasthetraditionalfreighttransport.

Consolidation

Itmeansthatthecargointhecontainerisloadedandunloadedatthesameport,andthegoodswillnotbeunpackedbeforethegoodsarriveattheportofdestination,thatis,thegoodsarethesameportofdischarge.Thiskindofcounterserviceisshort,convenientandfast,andthegeneralstrengthcabinetcompanywillprovideonlythiskindofservice.Conversionreferstothefactthatthegoodsinthecontainerarenotthesameportofdestination,andtheyneedtobeunloaded,shippedortransshippedmidway.Becauseofthedifferentportsofdestinationandlongwaitingtime,suchgoodshavealongertransportationperiodandevenhigherfreightcharges.

Circumstanceswhentheycouldbeused

Itneedstobefasterthanmultimodaltransport

Groupsareusuallyusedbysea,railandthroughroads.Itsquantityisnotlarge,andthegoodsdonothavestricttimerequirements.

Consolidationisapplicabletoairtransportationandtransportationnecessities,soconsolidationwillbeusedincaseswhereemergencysituationsortransportationneedlesstime.

Costeffectivepalletloadlevel

Inthefirstpart,thechoiceisdirectroad,thecostis1350,andeachpalletis108,sotheresultis1350/108=12.5.

Throughcalculation,theresultis12.5,sowhentheloadisequaltoorgreaterthan12.5pallets,thedirectroadmodeiseffective.However,accordingtothismethod,12oftheresultsarefinallyobtained.

Technicalreport4—leasttotalcostconceptCasestudyextension

Table–TransitcostsKirriemuirtoMontreal

Item

RouteFrom

Routetoandaveragetransittime

Costper40ftcontainer

Transitextras

Roadbyrigidcontainerflatbedlorry

KirrimuirBottlingPlant

CoatbridgeRailport

1day

£

145

OnloadKirriemuir£

（BottlingCompanylifttruckandstaff）

OffloadCoatbridge£

28

TilburyContainerTerminal2days

505

OffloadTilbury£

32

DemurrageTilburyAverage8days£

15per24hours

Fist48hoursfree

RailbyTransfreight

Coatbridge

Railport

SouthamptonContainerTerminal1day

315

OnloadCo